Standard & Poor's has assigned a triple-A rating to the transaction, US$250 Million Variable Funding Senior Certificates Series 2000-1, issued from a US$ Diversified Payment Rights Master Trust.
The transaction uses proven structural elements of future flow securitization. Banamex is selling all of its existing and future non-treasury wire transfers, known as Diversified Payment Rights (DPRs), from certain U.S. correspondent banks to a bankruptcy-remote New York master trust. The trust has issued debt certificates, secured by the future flows, that will be sold to asset-backed commercial paper conduits, which in turn will issue commercial paper to fund the purchase.
Guillermo Jimenez, Executive Vice President of Banamex, said, "Securitization is an integral part of our financing strategy, and we are pleased to have worked with XLCA and Banc of America to structure a strong transaction that is both ground-breaking and attractive to investors."
Jerome Festa, Managing Director of Latin American Securitization at Banc of America Securities, said, "We are pleased to have brought the technology of securitizing payments rights that Banc of America developed to Banamex and the Latin American market."
"We are delighted that our first transaction begins what we trust will be a long and mutually beneficial relationship with Banamex," said David Stevens, President and Chief Operating Officer of XLCA. "Their financial strength and their track record in the bank future flow market epitomize the financial institutions in our target markets. The Banamex transaction is also an industry first for the region in terms of asset type and is emblematic of how our experienced team of financial guarantee professionals is committed to providing innovative, well-structured financial solutions that help meet the funding needs of our clients."
T. Wynne Morriss, Senior Managing Director-Structured Single Risk of XLCA, added, "XLCA offers a new credit of the highest quality to investors who are managing capacity limits to other guarantors. We look forward to working with both new and established issuers in structured single risk sectors such as future flow securitization and project finance, as well as with issuers looking to efficiently structure consumer and corporate asset securitizations."
XL Capital Assurance Inc., rated AAA by Standard & Poor's Ratings Services and Fitch, Inc., is a New York-domiciled financial guarantee insurer that specializes in corporate and consumer asset securitization, essential infrastructure project finance, future flow securitization and U.S. public finance. At September 30, 2000, XLCA had statutory assets of approximately $87 million, liabilities of approximately $2.4 million and surplus to policyholders of approximately $84.6 million.
XLCA is a subsidiary of XL Capital Ltd (NYSE: XL) which, through its principal operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. At September 30, 2000, XL Capital Ltd had consolidated assets of approximately $16.4 billion and consolidated shareholders' equity of approximately $5.6 billion.
This press release may contain forward-looking statements. Such statements are based on current plans, estimates and expectations. Accordingly, forward-looking statements involve inherent risks and uncertainties and a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. XLCA does not undertake any duty to update publicly any forward-looking statements contained herein in light of new information or future developments.